HOUSTON, Oct. 24, 2012 (GLOBE NEWSWIRE) -- Marathon Oil Corporation (NYSE: MRO) is providing additionalinformation on completed, announced and potential divestitures andacquisitions. As previously announced, Marathon Oil anticipates divestituresof $1.5 billion to $3 billion over the period of 2011 through 2013in an ongoing effort to optimize the Company's portfolio forprofitable growth. To date, the Company has entered into agreementsfor approximately $1.1 billion in divestitures, of which more than$700 million have been completed. Included in the $1.1 billion noted above is the pending sale ofthe Company's Alaska Cook Inlet assets for $375 million, subject topurchase price adjustments. This transaction is currently underreview by the Federal Trade Commission and the Alaska AttorneyGeneral's office, which could impact the closing of thistransaction. In addition to these efforts, Marathon Oil has engaged indiscussions with respect to a potential sale of a portion of theCompany's 20 percent outside-operated interest in the Athabasca OilSands Project in Alberta, Canada. Given the uncertainty of such atransaction, potential proceeds have not been included in theCompany's guidance of $1.5 billion to $3 billion indivestitures. After making a substantial investment in the South Texas EagleFord resource play in 2011, Marathon Oil has acquired or reachedagreements in principle to acquire almost 25,000 additional netacres in the core of the play at an approximate cost of $1 billionso far in 2012. The two major transactions were the acquisition ofPaloma Partners II LLC, whereby the Company acquired over 17,100net acres at a cost of $750 million, and a pending acquisition ofapproximately 4,300 net acres for a currently estimated $227million, both excluding purchase price adjustments. The Palomaacquisition closed in August, while the pending transaction isexpected to close in the fourth quarter 2012. The acreage in thepending acquisition overlaps Marathon Oil operated acreage, iscurrently producing 2,900 net barrels of oil equivalent per day(BOED) and will add 40 net drilling locations to Marathon Oil'sinventory.
This is expected to bring Marathon Oil's position in the core ofthis liquids resource play to approximately 225,000 net acres. TheCompany has an additional 100,000 non-core net acres, which theCompany is currently marketing for sale. The disposition of thisacreage will not impact the Company's previously disclosed targetof 120,000 BOED by 2016 from the Eagle Ford.The Company will host its previously announced third quarterfinancial results webcast and conference call on Tuesday, Nov. 6 at2:00 EST. The Company anticipates providing an expanded update oncurrent operations across its resource plays and explorationprospects. The webcast is expected to last approximately 90 minutesand can be accessed at http://www.Marathonoil.com. ### This release contains forward-looking statements withrespect to projected asset dispositions, the sale of the Company'sAlaska assets, discussions with respect to a potential sale of aportion of the Company's 20 percent interest in the Athabasca OilSands Project (AOSP), an additional acquisition in the Eagle Fordresource play, marketing of 100,000 net non-core acres in the EagleFord resource play and production estimates for the Eagle Fordresource play. The projected asset dispositions are based oncurrent expectations, estimates and projections and are notguarantees of future performance. Actual results may differmaterially from these expectations, estimates and projections andare subject to certain risks, uncertainties and other factors, someof which are beyond the Company's control and difficult topredict. The completion of the sale of the Company's Alaskaassets is subject to necessary government and regulatory approvalsand customary closing conditions. The potential sale of aportion of the Company's interest in the AOSP and the potentialsale of 100,000 net non-core acres in the Eagle Ford resource playare subject to successful negotiations and execution of definitiveagreements. The additional acquisition in the Eagle Fordresource play is subject to execution of final agreements and tocustomary closing conditions. Factors that could affect theexpected production in the Eagle Ford include pricing, supply anddemand for liquid hydrocarbons and natural gas, the amount ofcapital available for exploration and development, regulatoryconstraints, timing of commencing production from new wells,drilling rig availability, unforeseen hazards such as weatherconditions, acts of war or terrorist acts and the governmental ormilitary response thereto, and other geological, operating andeconomic considerations. The foregoing factors (among others) couldcause actual results to differ materially from those set forth inthe forward-looking statements. In accordance with the "safeharbor" provisions of the Private Securities Litigation Reform Actof 1995, Marathon Oil Corporation has included in its Annual Reporton Form 10-K for the year ended December 31, 2011, and subsequentForms 10-Q and 8-K, cautionary language identifying other importantfactors, though not necessarily all such factors, that could causefuture outcomes to differ materially from those set forth in theforward-looking statements.
CONTACT: Media Relations Contacts Lee Warren: 713-296-4103 John Porretto: 713-296-4102 Investor Relations Contacts Howard Thill: 713-296-4140 Chris Phillips: 713-296-3213